As of December 31 of the current year, Armani Company's records show the following. Hint. The owner invested $2,600 cash during the year. Cash Accounts receivable Supplies Equipment Accounts payable Armani, Capital, December 31, prior year Armani, Capital, December 31, current year Armani, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses $ 11,600 10,600 7,600 6,600 14,200 17,600 22,200 14,600 36,200 25,200 21,600 13,600 9,600 Required: Prepare the current year-end balance sheet for Armani Company. ARMANI COMPANY Balance Sheet December 31 Assets Liabilities Total liabilities Equity Total assets 2$ 0 Total liabilities and equity 24

As of December 31 of the current year, Armani Company's records show the following. Hint. The owner invested $2,600 cash during the year. Cash Accounts receivable Supplies Equipment Accounts payable Armani, Capital, December 31, prior year Armani, Capital, December 31, current year Armani, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses $ 11,600 10,600 7,600 6,600 14,200 17,600 22,200 14,600 36,200 25,200 21,600 13,600 9,600 Required: Prepare the current year-end balance sheet for Armani Company. ARMANI COMPANY Balance Sheet December 31 Assets Liabilities Total liabilities Equity Total assets 2$ 0 Total liabilities and equity 24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Consider the following financial information about Sam's Cake Factory for Dec. 31, 1999. The company assets are cash, $3,350; notes receivable, $1,546; accounts receivable, $4,675; merchandise inventory, $2,345; land, $90,125; equipment, $15,560. The liabilities are accounts payable, $18,575; wages payable, $25,432; notes payable, $26,821. The owner's cap- ital is $46,773. We also have the following financial information for Dec. 31, 1998: The company assets are cash, $2,200; notes receiv- able, $1,490; accounts receivable, $4,496; merchandise inventory, $2,857; land, $85,945; equipment, $17,651. The liabili- ties are accounts payable, $16,532; wages payable, $22,351; notes payable, $24,956. The owner's capital is $50,700. (a) Create a balance sheet for each of the above. (b) Perform a vertical analysis on each balance sheet. (c) Perform a comparative analysis of the two balance sheets. (d) Perform a horizontal analysis using the two balance sheets.
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